Questions You Should Ask Before You Buy a Home

Purchasing a house requires planning, budgeting and preparing to make a big decision. It is one of the biggest investments of your life. If you decide to buy a house, you should start by asking the following questions. Thankfully, the experts at Rex Homes have some additional information on these important questions you should be asking yourself.

What is a good budget?

While setting up a budget for a new home you need to factor in additional costs that you may incur such as the home insurance, property taxes and additional expenses required to maintain the house. It is a huge mistake to start looking for houses without having a budget plan beforehand. If you did not calculate your budget correctly, you may face delays in purchasing a house or may be forced to compromise on some aspects of the house.

Do I need a depreciation schedule?

Depreciation schedule can help ease your financial burden. You can consult your accountant and understand to value of your depreciation schedule and what are its impacts.

Is it better to buy an old property or a new one?

New and old properties, both have their own pro and cons. One may seem cheaper than the other but there is usually a trade-off that you should consider before making your decision. The value assets of an old house decrease over time but on the other hand a new house may be above your budget. There is no good answer for which property to buy and it is best to evaluate all your options by seeking help from your accountant.

What is the difference between repair and renovation?

In real estate, repair and renovation have separate meanings. If you are replacing broken windows with new ones it is considered renovation. But if you are merely fixing cracks, or setting electrical connections it classifies as a repair. Both repair and renovation have different permits and expenses required.

What is the best type of ownership?

Apart from all the parameters to consider as mentioned above, you also need to decide whose name will be the property be registered under. This is a critical step as if problems arise in the future, you are disputed on the ownership of the property. You can register the property in your own name, or that of your spouse, or a company’s name. You can also register a joint name with your spouse or family. Each type of ownership also impacts tax so you should consider this before-hand to get tax benefits in the future.

How can a good mortgage professional assist you in your house purchase?

As mentioned earlier, purchasing a house is a big decision and you need to plan your budget and take various factors into consideration before choosing the house. A good mortgage professional has a complete understanding on all the steps involved in purchasing a house and can provide their expertise in helping you select from all your options. Hence, it is recommended to contact a mortgage professional if you are planning to buy a house so that you can have a hassle-free purchase and to avoid any homebuyer’s remorse in the future.

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